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What is the story about?
CME, the financial derivatives exchange, based out of Chicago, has revised the margins on Copper trades higher by 20% on Friday, January 30, after prices in the global markets hit a record high.
Initial margins, which stood at $11,000 per contract, have now been revised higher to $13,200 per contract. Maintenance margins, which were at $10,000 per contract, have been revised higher to $12,000 per contract.
Copper prices in the global markets exceeded $6 per pound or over $14,000 per metric tonne on the London Metal Exchange (LME) on Thursday.
Earlier, CME had also revised the margins higher on Silver contracts to 11% of so-called notional from 9%. Heightened risk profile margins were also revised to 12.1% from 9.9% earlier. Margins for Platinum and Palladium futures were also revised higher.
Commodities are witnessing major price swings over the last 24 hours. Copper prices have surged after a 42% jump in 2025 led by a weaker dollar , demand in China, and prospects of a supply shortfall due to demand coming from the energy, data centers and automobile segments.
“The market’s expectations have become too uniform at this stage and need some adjustment,” said Jerry Zhang, a trader at Ningbo Meishan Bonded Port Hongyi Investment Management Partnership Co. “Volatility has also become quite high, so we prefer to control risk and avoid participating too much.”
Initial margins, which stood at $11,000 per contract, have now been revised higher to $13,200 per contract. Maintenance margins, which were at $10,000 per contract, have been revised higher to $12,000 per contract.
Copper prices in the global markets exceeded $6 per pound or over $14,000 per metric tonne on the London Metal Exchange (LME) on Thursday.
Earlier, CME had also revised the margins higher on Silver contracts to 11% of so-called notional from 9%. Heightened risk profile margins were also revised to 12.1% from 9.9% earlier. Margins for Platinum and Palladium futures were also revised higher.
Commodities are witnessing major price swings over the last 24 hours. Copper prices have surged after a 42% jump in 2025 led by a weaker dollar , demand in China, and prospects of a supply shortfall due to demand coming from the energy, data centers and automobile segments.
“The market’s expectations have become too uniform at this stage and need some adjustment,” said Jerry Zhang, a trader at Ningbo Meishan Bonded Port Hongyi Investment Management Partnership Co. “Volatility has also become quite high, so we prefer to control risk and avoid participating too much.”
